Frooti and Parle Agro's
"Frooti" There would hardly be any Indian Who has not drunk Frooti or heard its name Last year, the sales of this brand were ₹ 4,000 crore. It means ₹11 crore per day This Frooti product belongs to Parle Agro. This Parle is not the one which makes '20-20' or 'Parle-G' Biscuits. Nor is this the Parle that makes Bisleri. However, Yes, these three Parles are owned by brothers only. This group is run by three sisters Yes, it is said that. There are some women also in this male dominant business who are doing tremendous work. Out of these, this group is very important. These three sisters are Schauna, Alisha and 'Nadia Chauhan'. She is the marketing officer of Parle Agro Group and when she joined Parle Group in 2003, She was only 17 years old
And the sales of Frooti was only ₹300 crores. From ₹300 crores, they have brought Parle Agro Group to ₹8000 crores And out of that, Frooti alone has a sale of ₹4000 crores. This company has other products like Bailley package drinking water Or APPY FIZZ. These are the products of this group
Now, you may be thinking that As we heard the name Parle, we thought Parle-G, 20-20, Monaco, Krack Jack, All this comes Like, where did bring this new thing?
Listen Sir, I will tell you the complete history of Parle Group in this article. Like,
When was this group started?
It broke into three pieces
Who takes care of which pieces?
Which group makes which products?
Hence, you will get to know all about the Parle Group and in today's details, we will know one more thingt that is
How Frooti was launched?
How does it create a different identity in the crowd of the market? And today it is doing sales of ₹4000 crores.
Meanwhile, you are going to learn a lot about marketing, strategy and packaging lessons.
History of Parle Group
Parle Group was started in 1929 by Mohanlal Chauhan And where? In Vile Parle In the beginning, They were having a bakery business, i.e., Bread, Bun, Rusk, toast They made all of these However, he did this work for 10 years but didn't achieve much success. Big success and the breakthrough, In 1939 i.e., after 10 years, They started making biscuits. For example, 'Parle-G'
They started work, however, didn't sell in the market. They only have the license to supply the British Army. So, they used to make biscuits only for the British Army In 1947, when the country gained independence, They said, 'The British Army has now left; now, sell it openly'
Now, at that time, in the name of glucose biscuits British biscuits used to be sold in the market. Hence, they played the 'Swadeshi Game' They said - 'Why are all of you eating foreign biscuits? Eat local biscuits, that glucose ones, Eat our biscuit, Parle. Then, he started selling Parle biscuits and gradually it became a very popular brand. At that time, Coca-Cola was also doing limited trade in India. However, in 1977, the Morarji Desai government Banned Coca-Cola and completely removed it from India. Hence, the market of soft drinks got completely opened, And Parle product made two or four drinks. Tell the names in the comments. Let's see who has how much knowledge. Let me provide you the answer. Those brands were 'Gold Spot', That brand was 'Thums Up', That brand was 'Frooti' So far, the story is going on very straight,
Parle Agro's Division and Bisleri
However, there is a twist in the story Mohanlal Chauhan Ji had five sons. The fifth son i.e., the youngest one Jayantilal Chauhan said that the lifestyle of these four brothers is different. I have to do something of my own And I will do my own business separately, So, Jayantilal Chauhan started his own company And the name of that company is PARLE AGRO. Whose brand of product is Frooti which we will talk about in detail. Now,
How many are left after that?
Four brothers. One of the four brothers also got through the same thing. I will also separate from this, just like he did. He was Ramesh Chauhan And when he separated, he took the brand of package drinking water Which brand? "Bisleri".
Now, there are three groups of Parle-G. There is one group in which three brothers sit together. It is the main group - 'Parle Products'.
What are parle products?
Parle-G, 20-20, Monaco, Krack Jack, Kismi Bar.
So, overall, it is a biscuit and toffee division.
The second one is Parle Bisleri. Which is overseen by Ramesh Chauhan Ji (Bisleri) comes under him And
The third one is Parle Agro. In which, Frooti, Appy Fizz and Bailley drinking water comes under it.
So perhaps today you got clear about the history of Parle Group. Like there are three brothers and they operate in this way.
Frooti Case Study
Now, let's come to our main case study topic i.e. 'Frooti'
Frooti was launched in 1984. It became a hit as soon as it was launched. Now, you will say sir Ji, What did they do that became a hit as soon as it was launched? There were many reasons
The first reason was 'Packaging Innovation'
What was the scene at that time? You all remember that brother If you want to drink a cold drink. Go to the shop, take a glass bottle, Drink it there and put the bottle back If the shopkeeper nearby is known to you. Then he will let you take the bottle home. However, after you go home and drink it, You will have to come back the next day and return it. This was the thing.
Now, they said, Due to this, There are some things done and some things not done. So, Parlo Agro was the first company in India to launch the tetra pack. So, it was a plastic tetra pack, and Which they launched very first time And it was launched in a green packet. So,
What was the reason for their success at first?
'First Mover Advantage' There is no competition nearby
One of its kind.
The second reason for their success was choosing India's favourite product. Brother, if you will lauch a Mango Toffee, So, Mango Bite will be a hit, When you will go to the market. You will not find any shop. Which does not give Mango Juice. And the shop which gives Mango juice is a successful shop in itself. So, mango is India's favourite. It is launched in the same flavour. This is the second benefit
Thirdly, this drink was marketed like it is a children's drink. Now earlier the children used to say, Give me Thums up, Give me Limca. These all things were like these are carbonated drinks. It is not for the health of children. There should be something healthy. Now, Mango Juice. Now, the children are saying give us mango juice. Then the parents are also happy. The child is asking for healthy things by himself. Let's make him drink. So, if the child asks for a healthy thing, Then the parents get great happiness. This was also a hit
In this way, the product became successful. However, obviously. It is known that the pockets of Indians are not very deep. There is not much money. So slowly and gradually. They reached ₹300 crore turnover by 2002-2003.
They did another innovation in 2002, and again, it was the first in India. That Frooti was given in a plastic bottle and for the first time, They have given that too, If we look at it at this time, Frooti was a successful company.
However, at a very limited level with a turnover of ₹300 crores. Everything work is going well
Who is Nadia Chauhan?
Now, in 2003, Nadia Chauhan entered (daughter) and she was handling marketing. When she joined in 2003, she was only 17 years old. Now, you will say Sir Ji, A 17-year-old girl was placed in charge of the company
and that too in marketing, and it's a 300 crore company
Though she handled the entire position when she was 17 years old, However, since the age of 11, She used to come to the factory and office with her father. The father said all three are my daughters, I don't have a son. Instead of making a difference in the son and daughter, It is better to educate the daughters in the same way as the sons and this is the core thing of Marwari and Gujarati community. To involve children in business from a very young age And I have given suggestions many times if you want that your son increase your business to the next level, Hence, arouse his interest in business at a very young age. Even I am saying that you must make them come straight from school to the office, shop, and factory. Even if they do not do any work, They can do homework sitting in the shop. However, if the business words will be put into the ear. Then, his interest will increase in the future. Hence, she used to come from the age of 11. At the age of 17, she took over the full charge.
First Marketing Masterstroke.
Now, she took the full charge, She took her first decision. That brother, Frooti comes in a green packet, The colour of mango is yellow, and, now you are selling it in green,
What colour psychology is this?
So, first of all, make it in yellow (She said). So, the first decision she took was to bring it from a green to a yellow packet. And in today's generation, whoever knows Frooti, Knows it by the name of the yellow packet. And this is the identity of mango and when they have copied it, If we see, now all the mango drinks available come in yellow packet. In 2004, what did they play another masterstroke?
Second Marketing Masterstroke
They launched a small samosa pack. Samosa pack, a packet used to come for ₹2.5, Listen to the logic behind it.
The first logic was that brother, When we do something worth ₹5 or (price). One of the instances is that like "Papa, give us ₹10', 'Papa, give us ₹5', Now, if there is a purchase of ₹5 and ₹ 10, What happens? If Papa goes with Mom and Dad, Only then will the child be able to take it. He cannot take it alone.
However, when the packet is ₹2.5, Then the child can purchase it by himself by adding ₹1, or ₹2. This was a very big benefit.
Second benefit: India is a touch-and-feel market. India says to use it first and then trust. So, we don't buy big bottles of shampoo. At first, we buy a packet of shampoo worth ₹ 1 and then thinks, yes brother, there were foams, Now, we will buy the bottle. Then they said, it's better to buy a big fruity bottle of this or a packet of ₹10. Let's taste it for ₹2.5 as soon as this was priced at ₹2.5, As it happens, when a shopkeeper does not have ₹1, Then, he would give coffee to the customer. Hence, it started being given in that way also And so, sales increased further. Additionally, those who don't even purchase it, They started thinking and saying,
What goes in ₹2.5? At least show it. What is it?
Due to this, apart from the children, The demand for it increased rapidly in other areas and in the rural areas.
Third Marketing Masterstroke
The third masterstroke - They said Like, as we said Frooti is a children's drink And if we say that it is a children's drink, Then, only children will drink that
And children have 10 more options, If we have to take the Frooti brand forward and increase sales. Then we must not only segment it for children, Make it a drink for old people, youth and all other people. Then, it will be okay. So, they used to use children in the advertisements children, children, children. Now they said that it's the time to change the image.
What has to be done to change the image?
Like brother, you have to change its marketing and bring it from children to adults And where they did bring it on adults? They immediately went into the celebrity market. They hired Shahrukh Khan Like brother you do Frooti advertisement. Currently, Alia Bhatt is doing its advertisement. Currently, your Allu Arjun does its advertisement.
Now, their appeal is in the Youth i.e., mass celebrity. Look, brother, big celebrities are drinking this Frooti 50-year-old Shahrukh Khan also drinks it 30-year-old Alia Bhatt also drinks it. Hence, in the overall category, It is a drink for everyone from children to old people. They communicated this message to the market. So, slowly, that turnover also increased from ₹300 to ₹600, ₹700, ₹800, ₹1000, ₹1500 and even ₹2000. However, a new tension started to come. Like, 95% revenue of our Parle Agro company is coming from Frooti only. So, for god sake, if anything happens. There will be a big loss to the company. There should be no complete trust in one single customer. Like, you think that I have ₹10 crore sale ₹9 crore comes from one customer. It is wrong. There is a purchase of ₹10 crores, You buy ₹9 crores from only one place. It is wrong Or if you are dependent on only one product, Everything is wrong. You need to pursue diversification. So that there is no risk in the future. So, they said let's do the diversification.
What to do?
We played the bet on Mango, This time, let's play on Apple. Hence, they have launched Appy Fizz based on Apple. If you notice the packaging of this whole group, They were the first to bring Tetra Pack And look at the design of the Appy Fizz. Such bottle is also not in the market, They also came up with this first. Hence, they have a strong hold on the packaging. So, they do separate marketing for Appy Fizz. Design bottle separately and it had a different taste And there was no competition in the market, That product also got hit successfully in the market
Then, that second product?
Said - well, we have only done lesser. Let's do more Hence, they launched their own package drinking water. The water that comes in the name of Bailley. It also belongs to them And they do sales of Bailley worth ₹1000 crores. So, the total sales of Parlo Agro products, Where 95% share was of Frooti, It has come down to only 48%. 52%, other products also started to be sold. So, Parle Agro has a sale of ₹8000 crore. Out of which, Frooti has a sale of ₹4000 crore. Whereas, Bailley has a sale of ₹1000 crore And other include Appy Fizz and some more products. Which they are making total sales right now.
Distribution of FMCG.
The biggest reason for the success of any FMCG product is 'Distribution' This Frooti product has a supply in more than 2 million stores (i.e., 20 Lakh stores). They have an in-house team of more than 800 salespersons. Who ensures that our product is available on a regular basis at 2 million outlets. Hence, this was the overall story of Frooti.
What did you learn from this story?
Some Quick Lessons. Let me tell you some quick lessons.
Firstly, you have to do something different from the crowd. Now that difference can be in any term. Whether considering the quality of the product or product packaging. They made tetra pack and that became a big thing in itself.
Secondly, take care of diversification. You should never have a over dependency on any one product, any one customer, any one vendor.
Third, if you want to take your product to a big level, Then don't limit to one category. You said it is for children, Then those children will take it or that particular children's population. So, if you want to increase the sales, So, you can do one product for children, one for youth and one product for the general public Or, communicate the same product to different categories.
So, these are three lessons from my side and what did you learn?